Atwater guns for the insurance industry

Wednesday, March 12, 2008

By Randy Diamond | Friday, March 7, 2008

Senator Jeff Atwater, the North Palm Beach Republican, is gunning for the insurance industry with two bills he introduced Tuesday in the current legislative session.

The first bill amends Florida’s deceptive and unfair trade practices act to remove the insurance industry’s exemption from being sued for false advertising regarding insurance polices, rates and discrimination.

Currently, only the state Office of Insurance Regulation can intervene in those matters.

The second bill increases fines for insurers who violate the state’s insurance code. Non-willful violations would cost $25,000 up from $2,500; willful violations would cost $100,000, up from $20,000. After the initial fine, willful violators can be fined an additional $25,000 a day.

The second bill grew from Florida Insurance Commissioner Kevin McCarty’s frustration with his lack of options in the Allstate insurance case.

McCarty in January lifted the insurer’s license to write new business after he accused the company of refusing to turn over subpoenaed documents regarding its underwriting and pricing practices.

McCarty complained at the time that his only choice was a a slap on the wrist — a small fine — or the “death penalty”— suspending Allstate’s license.